3 Drug Stocks to Buy at a Discount
Over short periods, Wall Street is largely driven by emotions. When there's a compelling story, such as the emergence of GLP-1 weight loss drugs in the pharmaceutical sector, investors tend to become overly excited.
Eli Lilly's (NYSE: LLY) industry-leading GLP-1 drugs have netted it a price-to-earnings ratio (P/E) of 53. Other well-respected drugmakers, meanwhile, have been left to languish. This is why contrarian investors should take a look at (NYSE: MRK), Bristol Myers Squibb (NYSE: BMY), and (NYSE: PFE) today.
Eli Lilly's 53 P/E ratio is huge. The stock price advance that led to that valuation has pushed the dividend yield down to a shockingly low 0.6%. The average P/E for the drug sector is roughly 30, with an average yield of around 1.3%. From a valuation perspective, it's pretty clear that investors are affording Eli Lilly a premium price.
Source Fool.com
Pfizer Inc. Stock
With 14 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
With a target price of 27 € there is a positive potential of 24.45% for Pfizer Inc. compared to the current price of 21.7 €.
